Pension Institutions and Annuities in Denmark

Andersen, Carsten ; Skjodt, Peter

World Bank, Washington, DC

关键词: ACCOUNTING;    ADDITIONAL PAYMENTS;    ADDITIONAL SAVINGS;    ANNUAL CONTRIBUTIONS;    ASSET ACCUMULATION;   

DOI  :  10.1596/1813-9450-4437
RP-ID  :  WPS4437

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper considers the overallstructure of the Danish pension system, reviews the relativerole of different types of pension institutions, anddiscusses their asset allocation strategies and investmentperformance. The paper also examines the regulation andsupervision of providers of pension services, the growingreliance on risk-based supervision, and the application ofthe so-called contribution principle. The Danish pensionsystem includes a modest universal social pension with asupplement for low-income pensioners and near universalparticipation in occupational and personal pensions that areprimarily based on defined contribution plans. The annuitymarket is well developed: 50 percent of annual contributionsare allocated to the purchase of deferred annuities, whileimmediate annuities are also purchased at or even afterretirement. However, detailed comprehensive data on the rateof annuitization are lacking. Distinct features of theDanish pension system include the widespread use of profitparticipating contracts with minimum guaranteed benefits andregular provision of bonuses, covering both the accumulationand payout phases, and extensive use of group deferredannuity contracts. A new traffic light system with periodicstress testing has resulted in greater emphasis on assetliability matching and hedging strategies by pensioninstitutions and a shift in investment policies in favor offoreign bonds and long-term swap contracts.